Federal Direct Subsidized Loan

Eligibility for Federal Direct Subsidized and Unsubsidized Loans is determined by information submitted on the Free Application for Federal Student Aid (FAFSA).   Direct Loans are awarded on the basis of financial need and may be Subsidized, Unsubsidized or a combination of the two.  Federal Direct Subsidized Loans are based on need, and no interest is charged while the student is enrolled at least half-time.

Interest Rate:

Undergraduate 2012-13 year:  3.4% fixed
Undergraduate 2013-14 year:  6.8% fixed

The interest subsidy during the six month grace period after a student leaves school has been eliminated by Congress for all Federal Direct subsidized loans that disburse after July 1, 2012, and before July 1, 2014.  Interest will accrue on those loans during grace periods.  Previously interest was not charged during the six month grace period.  Interest will continue to be deferred while a student is enrolled at least half-time and during periods of authorized deferments.  The U.S. government subsidizes the interest during these periods of time. 

Loan Fees: 1.051%

Credit Check: No

Annual Loan Maximum:
Freshman (0-23 credits), $3,500;
Sophomores (24-53 credits), $4,500;
Juniors & Seniors (54-84+ credits), $5,500;

Lifetime Loan Maximum:
Undergraduate students  $23,000;

Repayment Begins: Principal is not due while the student is enrolled at least half-time. Payments begin following a six-month grace period after graduation or if enrollment falls below half-time.

Repayment Terms: 10 years (other repayment plans available based on special circumstances)

Eligible for Federal Loan Deferments, Forbearances, or Loan Forgiveness: Yes

Eligible for Federal Consolidation: Yes

Interest Payments Eligible for Federal Tax Deduction: Yes

To Accept Your Federal Loan

Once students receive their SU Financial Aid Award Notice listing a loan estimate, they must complete the Master Promissory Note (MPN) and Entrance Counseling session to complete the application process for a Direct Loan. Visit your MySlice "Financial Aid To Do List" for instructions.

To Decline Your Federal Loan/Reduce the Loan Amount

To reduce the loan amount or decline the loan completely, students must notify the Office of Financial Aid and Scholarship Programs by completing the Loan Reduction/Cancellation Form.